Health plans owned by physician groups, hospitals and health systems were once very popular but have dwindled over the last 10 years due to continued consolidation of the health insurance industry, according to the report.
While exact numbers on consolidations are not available, large health insurers are increasingly acquiring smaller groups, which sometimes have trouble competing with the large plans in the market, according to the report.
Hospitals and physician are becoming more willing to sell due in part to state regulations requiring larger reserves, patient preference for larger groups and other issues related to economies of scale, according to the report.
However, some hospital and physician-owned plans continue to operate successfully. For example Renown Health, a health system based in Reno, Nev., continues to turn away larger plans who are interested in acquiring its insurance arm, Hometown Health. Even during the recession, Hometown Health increased its market share, according to the report.
Read the AMEDNews report on health plan consolidation.
